The Fed may announce a third round of debt-buying today in
a policy known as quantitative easing, according to almost two-thirds of economists in a Bloomberg survey. Government bonds
were little changed after South Korea unexpectedly left interest
rates unchanged, adding to speculation Taiwan’s policy makers
will hold borrowing costs at a review later this month.

One-month non-deliverable forwards for Taiwan’s dollar
dropped 0.3 percent to NT$29.59 against the greenback as of 4:10
p.m. local time, according to data compiled by Bloomberg. That’s
a 0.4 percent premium to the spot rate, which slipped 0.1
percent to NT$29.699.

Implied volatility in the currency for one-month was little
changed at 3.6 percent. The measure is a gauge of exchange-rate
swings used to price options.

The Bank of Korea kept the seven-day repurchase rate at 3
percent today, a decision predicted by only one of 16 economists
surveyed by Bloomberg News. Taiwan’s monetary authority, which
has kept its benchmark rate at 1.875 percent since June 2011,
will meet to evaluate policies by the end of this month.

“Bank of Korea has a track record of surprising the
market,” said Eric Hsing, a fixed-income trader at First
Securities Inc. in Taipei. “Traders are expecting Taiwan’s
central bank to keep rates unchanged too.”

The yield on Taiwan’s 1.125 percent notes due September
2022 was at 1.186 percent, according to Gretai Securities
Market. Benchmark 10-year note reached 1.189 percent yesterday,
the highest level since Aug. 21.